“What’s the cost of not having a business aircraft?” asks David H. Park, global high tech-

nology investor, founder and managing director of Foster City, Calif.-based Tadpole Ventures.

“What’s the cost of missed opportunity?” he says. Even in the high-tech communications world,

Park quickly learned that his own business aircraft offered surprising advantages: “It’s a game-

changing, life-changing experience,” he says.

Across the nation and around the globe, tens of thousands of businesses of all sizes have

experienced a similar epiphany. They operate more than 31,000 turbine-powered business air-

craft, transport millions of passengers annually, land at thousands of small airports, deliver trav-

elers to multiple meetings in a day, and bring customers to plants and facilities worldwide.

“Our business jet is an essential business tool, and it has made all the difference,” says Terry

Groff, chairman of Robesonia, Pa.-based Reading Bakery Systems.

CitationAir CEO William J. Shultz agrees: “Successful companies positioning themselves for

the future are recognizing that their ability to get out and see customers, move quickly into new

markets and develop personal relationships is critical.”

“Business aircraft are creating opportunities essential to fi nancial recovery, not just for those

who travel on them, but also for the hundreds of thousands employed by the fi rms that oper-

ate them,” points out Jeff Habib, senior vice president of U.S. sales at Dassault Falcon Jet.

“They provide direct access to otherwise diffi cult-to-reach communities that are catalysts

for business development,” he says. “Given today’s beleaguered economy environment, the

need couldn’t be greater.”

SPECIAL ADVERTISING SECTION // BUSINESS AVIATION

WRITTEN AND PRODUCED BYMARK PATIKY

Measurable Returns, Immeasurable Value A 2009 NEXA Advisors, LLC, study of the S&P 500 fi rms con-

fi rmed that those using business aircraft outperformed non-

users across every key fi nancial and nonfi nancial measure of

business success. But it is not just large companies that are

gaining the advantage; a 2010 NEXA companion study of S&P

small and midsize fi rms showed that, on average, total returns

were 245% higher for companies utilizing a business aircraft

than for those that were not.

Are you ready to invest in your own company’s success?

This Business Aircraft Acquisition and Financing Guide is

your resource for discovering a variety of ways to gain busi-

ness aircraft advantages. It details popular options, uncov-

ers surprising approaches and offers smart strategies for

buyers. It speaks to key industry executives who can help

you chart the best course for your needs and design meth-

ods for managing costs. Go ahead: Isn’t it time you, too,

took off toward new prosperity?

“With so many options, from on-demand charter and low-

commitment jet cards to fractional and outright ownership,

there have never been so many choices for gaining business

aircraft benefi ts—and they are more accessible and afford-

able than ever,” says David Wyndham, vice president and co-

owner of aviation consulting fi rm Conklin & de Decker. There’s

no shortage of aircraft choices either, from globe-spanning

jets like the Dassault Falcon 7X and Falcon 900 to the super-

midsize intercontinental Hawker 4000 and the economical,

high-performing Falcon 2000, and many others. In addition,

there is a new class of light jets, including the Embraer Phe-

nom 300, the Nextant 400 XT and the Hawker 200, as well as

turboprops like the Beechcraft King Air and Piaggio Avanti,

which can land on runways too short for most jets.

How does one choose? Typical travel distance and the num-

ber of passengers fl ying are key factors in selecting the right

aircraft, but issues of cabin comfort and amenities should not

be ignored, says Wyndham. Take Avantair fractional owner Carl

Pick, chairman, CEO and chief scientist of Video-Propulsion

Interactive Television, Inc., who is 6' 3": He loves his fuel-

effi cient Piaggio Avanti for its spacious stand-up cabin.

Danny Lavy, CEO of Montreal-based Elite Group Inc., took a

combined approach: He uses his wholly owned, fuel-effi cient

Dassault Falcon 2000 for fl ights to Europe and beyond, but

for shorter trips from numerous domestic locations, he uses

three Flight Options fractional shares to fl y clients and sales

staff between buyer locations throughout the U.S.

ADVERTISEMENT 2 // BUSINESS AIRCRAFT ACQUISITION AND FINANCING GUIDE

INVEST IN TIME

“With so many options, from on-demand charter and low-commitment jet cards to fractional and outright ownership, there have never been so many choices for gaining business aircraft benefi ts.”

David WyndhamVice President and Co-Owner, Conklin & de Decker

ADVERTISEMENT 4 // BUSINESS AIRCRAFT ACQUISITION AND FINANCING GUIDE

THE CURRENT MARKET: WHO’S BUYING

FLIGHT LOG // ATIAlthough Johnstown, Pa.-headquartered ATI Engineering

Services is a two-hour drive to the nearest major airport, com-

pany President Jamie Lecker quickly turned his off-the-beaten-

track location into an advantage using a business aircraft. With

his Beechcraft King Air C90, he is accessing clients nationwide

with speed and agility—and he’s serving his clients better.

For a lean, 20-employee company where every cost savings

is crucial, Lecker discovered the company plane was one of the

most effective investments he could make. “The majority of our

clients are in smaller cities like Huntsville, Ala.; Schenectady,

N.Y.; Youngstown, Ohio; and Jacksonville, Fla.; which are not

well served by the airlines,” says Lecker. “We needed to minimize

the amount of time our folks were stuck waiting for the next fl ight

out and maximize the time they’re with a client or in the offi ce.”

Now he’s fl ying high, turning daylong marathons into effi cient

one- or two-hour trips in the King Air. “It’s magnifi ed productiv-

ity, and it has improved the quality of our lives and drastically

improved the level of service we can offer our customers,” he

says. “In tough economic times, we look at an investment like

this even harder. There’s no question about it: This is a very

practical application of a very valuable business tool.”

ATI Engineering Services President Jamie Lecker

Business: Engineering design and services for aerospace and government

Travel Need: Remain in close contact with key clients across the U.S.

Aircraft of Choice: Beechcraft King Air C90

“Smart business managers recognize that now is the time to

work harder, to be in more places and to spend time with your

customers,” says Shawn Vick, Hawker Beechcraft Corporation

executive vice president of sales and marketing. “Small and

midsize companies are getting back to business. They are look-

ing for greater capabilities, better technology, greater effi cien-

cies, longer range, larger cabins and better fuel performance.

They are also defi nitely focused on lowering operating costs.”

Vick emphasizes that international demand for business jets

has eclipsed domestic orders in expanding markets through-

out Europe, Russia, India, Brazil, Asia-Pacifi c and the Middle

East. “These nations realize that to grow effectively, compa-

nies need the most effi cient tools—and a business aircraft is a

vital part of that strategy.”

Considering a Company Plane? While many new to business aviation agree that an aircraft owned

outright could be a considerable benefi t, crewing, maintaining,

housing and operating an aircraft can be daunting. Owners lack-

ing the inclination or infrastructure for an in-house fl ight operation

routinely turn to quality management fi rms to handle those tasks,

explains Conklin & de Decker’s Wyndham. Outsourcing can also

provide additional attractive benefi ts; for example, an underutilized

aircraft could be marketed for charter when not required. That rev-

enue can offset some ownership costs, he explains. In addition,

larger management companies accrue volume discounts on fuel,

insurance and training, and these discounts are then passed on to

the aircraft owner, further reducing the cost of ownership.

Buy the HourIf ownership isn’t for you, there are plenty of other options. Char-

ter and jet cards offer the lowest cost of entry for gaining busi-

ness aircraft benefi ts. As they require no major capital invest-

ment or long-term commitment, you simply pay for what you

use and then walk away. Charter quality can vary signifi cantly,

however, so Wyndham recommends going with the top-rated

companies. You may pay more, but your safety has no price tag.

Jet cards—typically offered in 25-hour increments by the

major fractional ownership providers—combine the fl exibility of

charter with the unsurpassed consistency, safety and reliabil-

ity of fractional ownership. You pay only for the time aboard,

so one-way fl ights are practical and, unlike charter, they don’t

involve any repositioning or empty-leg return charges. Although

jet cards cost more than fractional shares on a per-hour basis,

many users purchase multiple cards annually because of the

no-commitment convenience and ease of use.

ADVERTISEMENT 6 // BUSINESS AIRCRAFT ACQUISITION AND FINANCING GUIDE

GLOBAL ACCESS AT A FRACTION OF THE COST

FLIGHT LOG // SSE INC.In her newly published book, Across the Divide, Susan Elliott,

former IBM executive and founder of IT services fi rm SSE Inc.,

describes how she helped companies manage technology and

improve productivity and effi ciency throughout the digital revolu-

tion. Now she is bridging time and space with her NetJets Mar-

quis Jet Card.

Although Elliott no longer endures the pressures of business

at cyber speed, her Marquis Jet Card enables an equally hectic

personal schedule that includes book signings across the coun-

try. She continues to consult, and often emphasizes: “Business

is still about personal interaction and using time effi ciently.”

Nine years ago, Elliott acquired her fi rst Marquis Jet Card, and

she has been renewing it ever since. “It’s the best thing we ever

did. When every minute counts, you can work on the plane and

maximize your time. If you take several people to solve a cli-

ent’s problems, it makes a huge difference,” she says. “It really

boosted my productivity, but safety, convenience and service

quality are most important.”

Elliott also likes the Marquis Jet Card’s simplicity: “When you fi nish

your hours, you can walk away, and you don’t have to worry about

selling a share. You don’t have to worry about ownership costs or

the residual risk,” she adds. “Look at the value. That’s exactly what

drove the decision. It’s been an exceptional experience.”

SSE Inc. Founder and Chairman Susan Elliott

Business: Management consulting and technology application

Travel Need: Book tours, client meetings, personal travel

Aircraft of Choice: NetJets/Marquis Citation V Ultra

NetJets, the world’s largest and most experienced fractional

provider, truly changed the landscape for acquiring business

jet advantages when it created the concept of fractional air-

craft ownership more than two decades ago. With fractional

ownership, you enjoy all the benefi ts of owning a whole aircraft

at a fraction of the cost and without any of the management

responsibilities. In addition to the one-time acquisition cost

for the share, there is a monthly management fee to cover

all the indirect operating costs and an occupied hourly fee to

cover the direct operating costs. Even though you own a frac-

tion of a specifi c aircraft when you purchase a NetJets share,

you have the opportunity to switch to other aircraft types that

may better satisfy a specifi c trip’s requirements.

With a range of 13 different aircraft types to choose from

worldwide and new aircraft with global and regional ranges

arriving shortly, NetJets fl ies to more than 170 countries across

the globe and has operations in the U.S. and Europe. The com-

pany provides myriad options for short-range regional travel-

ers or globe-spanning, multinational missions. For example, a

NetJets owner could return from Moscow in a Falcon 7X, fl y the

next day to Washington, D.C., in a Hawker 400XP, and head to

Los Angeles a day or two later in an ultra-fast Citation X. The

following week he could fl y commercially to London and travel

throughout Europe in a NetJets Hawker 800XP.

In addition to fractional aircraft ownership, NetJets offers a

range of private aviation solutions. The Marquis Jet Card, for

example, takes business aviation value to an even higher level

by providing businesses and individuals with NetJets’ renowned

safety, service and reliability in a single-payment, 25-hour jet card.

ADVERTISEMENT 8 // BUSINESS AIRCRAFT ACQUISITION AND FINANCING GUIDE

Avantair Avantair, exclusive provider of fractional shares in the fast, effi -

cient Piaggio Avanti, is bringing new opportunity to business

aviation with a distinctive aircraft and exceptional programs.

“As the economy wavers, buyers are even more focused on

gaining best value,” says Avantair Founder and CEO Steve

Santo. “A majority of our owners are small companies. They

are fl ying more; more people are onboard; and they’re making

the best use of their time by hitting multiple locations in a day.”

While Avantair fractional ownership and the Avantair Edge

Card—which is available in increments of as little as 15 hours—

are experiencing steady growth, the Axis Lease Program is soar-

ing in popularity. Axis Lease blends the benefi ts of the minimal-

commitment Avantair Edge Card with Avantair fractional pricing,

and it eliminates big upfront capital outlays. “People want to

hold onto as much capital as they can, and they don’t want the

residual value risk associated with ownership,” explains Santo.

The Axis Lease commitment can be as short as two years,

and fl ight-hour costs—similar to Avantair fractional ownership

rates—are some of the lowest in the industry.

The plane is as unique as the programs. The Avanti’s rearward-

facing turboprop engines operate with amazing effi ciency and

leave the noise behind. The quiet, spacious cabin rivals that of a

midsize jet, and with a 460-mph cruise speed, the Avanti is faster

than many small jets. High performance, low operating costs

and the ability to fl y halfway across the country nonstop are key

attributes. “Owners love the cabin size, but the fuel savings is a

major factor that’s driving strong interest,” says Santo. In addi-

tion, Avantair is equipping every plane with Wi-Fi and implement-

ing iPad functionality for crew and passengers. “It is taking the

ownership experience to an entirely new level,” he adds.

Flight OptionsDespite the faltering stock market, Flight Options is defying

economic gravity. First quarter 2011 results soared 460%

quarter-over-quarter. According to CEO Mike Silvestro, Flight

Options owners—largely value-conscious small to medium-

size corporations—are fl ying more, exploring new markets

and creating new opportunities so that a broader range of

employees can gain the travel advantage.

Innovative new programs and new planes are grabbing buyer

attention. The company is the exclusive fractional provider of

the Embraer Legacy 600, which boasts the cabin of a very large

jet with an acquisition cost more in keeping with a midsize jet.

In addition, Flight Options’ fl eet of fast Cessna Citation

Xs is getting a makeover with new-technology winglets and

newest-generation avionics; all this translates to increased

performance, greater fuel effi ciency and enhanced capabil-

ity. “We’re installing Wi-Fi, completely updating the cabin and

offering the plane at Hawker 800 rates,” says Silvestro. With

the faster jet, each trip becomes less expensive.

Flight Options is also introducing the all-new small-cabin

Embraer Phenom 300, which offers superior range, speed,

unsurpassed amenities and 25% to 30% better fuel economy

than any jet in its class. The Phenom 300 is available through

a unique Flight Options Membership program that is competi-

tively priced and combines fractional and JetPASS card ben-

efi ts without ownership obligation. Members can buy three

25-hour blocks over a three-year period.

In another innovative move, Flight Options became the

launch customer for the Nextant 400 XT. The new jet is a

completely remanufactured (not upgraded) Hawker 400 that

will include new fuel-effi cient Williams engines, aerodynamic

enhancements, the latest-technology all-digital cockpit and

complete interior redesign. The transformed jet gains signifi -

cantly improved performance with a 50% increase in range

and operating cost reductions of as much as 29%.

SPEED, ECONOMY, OPPORTUNITY

INNOVATION DRIVING VALUE

Written and Produced by

Mark Patiky (markpatiky@cox.net)

Principal Photography: Paul Bowen

ADVERTISEMENT 10 // BUSINESS AIRCRAFT ACQUISITION AND FINANCING GUIDE

CitationAirCitationAir, wholly owned by Cessna Aircraft Company, oper-

ates a broad selection of Cessna jets including the small-

cabin CJ3, the midsize XLS+, the transcontinental Sovereign

and the world’s fastest jet, the Citation X. While the aircraft

are attractive and capable, the innovative ways to access

them are drawing buyer interest, notes CEO William J. Shultz.

“As our customers’ needs change together with the business

climate, our products adapt to those changes in a way that

allows them to operate effi ciently and effectively,” he says.

While the CitationAir Jet Card makes it easy to gain business

aircraft benefi ts 25 hours at a time, Jet Shares fractional owner-

ship is a practical solution for those fl ying more than 50 hours

annually. However, the new Jet Access program, designed for

those averse to residual risk, long-term commitment and large

capital investments, is capturing strong interest, explains Shultz:

“It has the look and feel of a fractional program without the need

to purchase the asset.” In addition, through an alliance with pre-

mier charter operator Air Partner in Europe, Jet Access custom-

ers can fl y throughout Europe and the Middle East.

Want to own a Cessna jet outright? Through its Jet Manage-

ment program, CitationAir can handle all operational respon-

sibilities. In addition, whole aircraft owners can access the

entire CitationAir fl eet at any time and select the best aircraft

for the specifi c trip. Factory maintenance, expert operations

plus the opportunity to gain revenue when your plane is idle

are all additional benefi ts.

Corporate Solutions, which provides access to any Citation-

Air aircraft at any time for existing in-house fl ight operations,

is the perfect backup plan when a company needs additional

planes for a short term. It is invaluable when your own jet is

out of service, or for corporate events, sales tours or board

meetings that demand multiple aircraft at one time. A new

Road Show program designed for fi nancial services compa-

nies, political campaigns and other groups on time-sensitive

schedules and complex itineraries is the answer when there’s

a critical need for reliability and back-up guarantees.

Tens of thousands of companies and individuals have dis-

covered the immeasurable value that comes with access to

a business aircraft. They have dramatically changed the way

they do business and live their lives. But now, more than ever,

these travelers are realizing that in addition to offering greater

comfort, convenience and security, business aircraft really

generate a signifi cant, measurable return on their investment.

From on-demand charter and low-commitment jet cards to

fractional and outright ownership, there have never been so

many choices for gaining access to business aircraft benefi ts.

And there have never been more ways to use these strategic

tools to create signifi cant, revenue-generating opportunities.

With products and capabilities like these, it’s no wonder that

so many are stepping aboard.

“You can meet with your clients more often, manage your

company more effectively, get more done during the day and

still get home to be with your family at night,” says Alan Klap-

meier, CEO and chairman of Maine-based Kestrel Aircraft.

Business aviation is the smart solution for those who value

their time and need to grow their business. More than just

a means of transportation, these business aircraft are taking

countless companies and individuals to new levels of pro-

ductivity and success. The advantages are very clear. So go

ahead: Reach for the sky.

Now, more than ever, it’s a very down-to-earth decision.

CHANGE IS IN THE AIR

PREPARE FOR TAKEOFF

“You can meet with your clients more often, manage your company more eff ectively, get more done during the day and still get home to be with your family at night.”

Alan KlapmeierCEO and Chairman, Kestrel Aircraft